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Bharat Forge inks £4-million JV with David Brown Group of UK

Discussion in 'Indian Defence Industry' started by bhagat, May 10, 2011.

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  1. bhagat

    bhagat 2nd Lieutant FULL MEMBER

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    BF Infrastructure Ventures Ltd (BFIVL), a subsidiary of Pune-based Bharat Forge, has signed a £ 4 million joint venture with David Brown System India (Holdings) Ltd, part of David Brown Group, to serve the heavy engineering industry by supplying new build gearboxes and aftermarket services to high growth sectors of power, mining, defence, wind, rail and steel.
    The JV, David Brown Bharat Forge Gear Systems India, will leverage the high points of both the companies for growth, said a press release. The new venture will make supply orders to both the government as well as private sector through participation in the bidding process. In the JV the partner companies will have a 50:50 equity stake.

    “The new venture will leverage Bharat Forge’s manufacturing and operational capability, strong sales network, strong brand reputation in the Indian and Global market and proven track record in developing and growing joint ventures, coupled with David Brown’s long standing reputation for highly engineered gear manufacturing to facilitate the growth of both partner companies," said B N Kalyani, chairman and managing director of Bharat Forge on Monday.

    The shareholders agreement was signed by Jim McColl, chairman of David Brown and Subodh Tandale, authorised signatory and director, Bharat Forge. The JV is planned to become operational from the Bharat Forge’s current facilities and by the middle of 2012, it is intended to have a dedicated site for gear box assembly and testing.

    The JV company plans to set up two service centres in Bangalore and Kolkata by the end of 2011 and the additional locations for service centres in Delhi and Hyderabad are also being planned by the end of 2013. "These service centres will be designed to world class standards, providing rapid aftermarket service and support to key industries," Bharat Forge said in a statement. Kalyani did not commit on a time by which the gear boxes will roll out from the JV facility, but maintained that there was a high market for the product due to the increasing usage of these boxes in the different industrial sectors.

    “India is a high growth territory for gearing products and services and the joint venture will enable us to develop the high demand and growing industries by providing customer proximity through a local network.â€￾

    Kalyani said gear boxes which were earlier imported by the defence industry will now be sourced for installation in the naval ships, submarine fleet, and tanks as well.
    Bharat Forge inks £4-million JV with David Brown Group of UK
     
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